NEOM and DSV launched a $10 billion exclusive sustainable logistics joint venture. NEOM is an area located on the Red Sea in northwest Saudi Arabia that is being developed from the bottom up as a living laboratory where entrepreneurs will choose the direction for this New Future. DSV is a company that provides supply chain solutions to thousands of businesses.
The joint venture aims to ensure the continuous development of ambitious projects in NEOM, Saudi Arabia. The two companies are set to provide NEOM with all-inclusive logistical services.
The joint venture will include investments in infrastructure and assets related to transportation and sustainable logistics as well as end-to-end supply chain management in accordance with the terms of the agreement. In addition, it will oversee the distribution and transportation of supplies and materials across the NEOM area.
In the joint venture, NEOM will own a 51% majority ownership position, with DSV holding the remaining 49%. NEOM predicts that there will be a significant need for construction logistics until December 31, 2031. After that, non-construction logistics will continue to expand. In addition, the partnership is anticipated to boost Saudi Arabia’s economy by fostering the growth of its infrastructure and generating approximately 20,000 new jobs.
What the Joint Venture Contributes to The NEOM Project
The CEO of NEOM, Nadhmi Al-Nasr, said that this partnership reflects the high level of confidence the private sector has in the project, as well as the tangible realization of NEOM’s vision. This arrangement positions NEOM to become one of the largest customers globally by allowing it to take advantage of the anticipated demand in both construction and non-construction logistics.
He continued by saying the joint venture with DSV will foster sustainability and innovation across the whole logistics value chain by collaborating with one of the leading logistics companies in the world. In addition to having a huge economic effect by generating tens of thousands of employment, this partnership will help the company develop and take a significant portion of the local and regional markets. It actively promotes the creation of jobs and advances an economy that looks ahead, perfectly capturing the essence of Saudi Vision 2030.
According to DSV Group CEO Jens Bjørn Andersen, NEOM presents DSV with a unique chance to assist a development that is setting the standard for innovation, technology, and digital transformation. He further noted that DSV already has a significant footprint in Saudi Arabia, he said. As a result, the alliance offers the company a significant opportunity for regional expansion.
NEOM and DSV are dedicated to promoting innovation, and they want to use a percentage of the joint venture’s profits to develop cutting-edge technology and launch fresh approaches to environmentally friendly and sustainable logistics.
The establishment of this new joint venture is a major step forward in NEOM’s mission to transform Saudi Arabia’s logistics industry. It also signals the beginning of a new phase in NEOM’s drive to realize Vision 2030 by laying the groundwork for innovative, sustainable logistics solutions.
NEOM and DSV partnership is set to birth cutting-edge technology that promotes sustainability and innovation.